Two insurance company mergers have the potential to shake up Colorado’s health insurance market—in a bad way, the Colorado Medical Society warned.
The two mergers in question are Anthem Inc.’s proposed acquisition of Cigna for $54 billion and Aetna’s buyout of Humana for $37 billion.
Both mergers need to be approved by state regulators must pass an antitrust review from the U.S. Department of Justice before they can close.
"These mergers are the equivalent of converting four 800-pound gorillas into two 1,600-pound mutants," said Colorado Medical Society president Dr. Michael Volz. "[Members of the four companies] overwhelmingly believe, based on their experience with these companies, that the mergers will result in higher premiums, less patient time with physicians, lower reimbursement and reductions in staff."
Volz projected that the mergers could possibly force some doctors out of community-based practices, and could convince others to leave the state or retire.
The Denver Post mentioned that even consumer groups such as the recently formed Colorado Campaign for Consumer Choice are contending that the mergers would damage health care in the state.
The Colorado Division of Insurance has approved the Aetna-Humana merger without arranging for a hearing, but has promised a hearing for the other deal.
"There are two key reasons why we didn't hold a hearing," remarked division spokesman Vincent Plymell. "The biggest reason was that we did not see much overlap in their business, with Aetna focusing largely on Medicare and Humana focused on the private insurance markets. And neither has really large market share here in Colorado."
Plymell added that “neither is domiciled here in Colorado."
"So while we do look at the competitive impact in our state, we are not required to hold a hearing on non-domiciled carriers."
The insurance companies involved claimed that the mergers will make health care more affordable in the region.
"Expanding access to affordable health coverage is the foundation of our combination with Cigna and will remain Anthem's top priority," remarked Anthem spokeswoman Joyzelle Davis.
